Homebuilders face an uphill climb. Currently, there’s a housing glut of up to 9 million homes on the market, according to analysts. No upturn is in sight.

Beazer Homes USA (BZH) is struggling to get a foothold in this crummy market. One of the top ten U.S. homebuilders, Beazer Homes has diversified into 16 states. Its eSmart program aims for energy efficiency, water conservation, and improved indoor air quality in all new homes to boost their value.

But for now, losses are growing. Second-quarter revenue fell 33.8 percent, driven by drops in new orders and in home closings. Net income from continuing operations was a loss of $54.9 million, or negative 74 cents per share.

More worrisome, say analysts, is Beazer Home’s long-term debt. In the second-quarter it rose to $1.287 billion, with $453.2 million in cash on the books.

There was one bright spot, though. The homebuilder’s second-quarter backlog dipped to 1,416 homes versus 1,781 last year.

Debt problems

Beazer Home’s disappointing recent quarter didn’t go unnoticed. JP Morgan analysts maintained an underweight rating on the company, citing order declines, higher negative earnings per share and an above average net-debt-to capital ratio of 75 percent versus the peer average of 39 percent.

Of the 11 analysts tracked by Thompson/First call, three have strong buys, with one buy, three holds, two underperforms and two sells. However, the median target price was $5.50, a nearly 50 percent premium over recent trading action.